Dogecoin News Today: Meme to Mainstream: Grayscale's Regulated Altcoin ETFs Debut

The New York Stock Exchange has greenlit the launch of Grayscale's Dogecoin and XRP exchange-traded funds (ETFs), set to begin trading on Monday, November 24. The approvals mark the first time two major altcoin ETFs will debut simultaneously on a U.S. exchange, signaling a pivotal moment in the maturation of crypto investment products. The ETFs, which convert existing private trusts into publicly traded vehicles, offer investors regulated access to Dogecoin and XRP without requiring direct custody of the underlying assets.

The move aligns with a broader surge in altcoin ETF activity, driven by SEC guidance issued during the government shutdown that streamlined the approval process for firms seeking to list crypto products. Grayscale's Dogecoin ETF (ticker: GDOG) will join REX-Osprey's DOGE product, launched in September under a different regulatory framework, as the second U.S. ETF tracking the memecoin. Meanwhile, the XRP ETF (GXRP) adds to a growing list of altcoin offerings, including funds for Litecoin, HBAR, and Solana, which have gained traction since late 2024.

The approvals follow a regulatory path similar to Grayscale's Bitcoin and Ethereum trust conversions. NYSE Arca certified the listings under the Securities Exchange Act of 1934, confirming compliance with SEC-approved standards. Both ETFs will carry a 0.35% management fee and trade on the NYSE Arca platform, making them accessible via standard brokerage accounts.

Market anticipation has already spurred heightened volatility. Derivatives trading in Dogecoin and XRP surged ahead of the launch, with CoinGlass data showing Dogecoin derivatives volume rising 30% to $7.22 billion and XRP derivatives jumping 51% to $12.74 billion. Prices for both assets fluctuated sharply in the days leading up to the listing, with Dogecoin dipping to $0.134 before recovering to $0.14 and XRP falling to $1.85 before rebounding toward $1.96. Analysts attribute the activity to speculative positioning and the potential for increased institutional demand post-launch.

The dual ETF debut also reflects shifting dynamics in crypto investment. While Bitcoin ETFs have faced outflows-nearly $1 billion in withdrawals recorded in early November-altcoin ETFs are attracting attention as diversified alternatives. Bloomberg ETF analyst Eric Balchunas noted that Grayscale's XRP and Dogecoin ETFs could catalyze further innovation, with a Chainlink-linked product potentially launching within a week.

Critics, however, caution that the broader crypto market remains fragile. Bitcoin's recent 30% decline has raised concerns about ETF-driven price correlations, with Citi Research estimating a 3.4% drop in Bitcoin for every $1 billion in outflows. Despite this, Grayscale's expansion underscores confidence in the long-term viability of crypto ETFs. The firm, which oversees $35 billion in assets, is also pursuing an IPO, signaling its ambition to dominate the digital asset investment space.

The launch of GDOG and GXRP could reshape perceptions of altcoins, particularly Dogecoin, which has historically been dismissed as a meme-driven asset. By offering regulated exposure, Grayscale aims to bridge the gap between traditional finance and crypto markets, potentially broadening participation among institutional and retail investors.